As you all know, asset values have been over-inflated because of zero (or negative) real interest rates. And, $14T worth of quantitative easing.

Is it time for Canada to raise interest rates. Property and construction are at a high level of activity. Finally, manufacturing is back to normal levels. Only natural resources are under performing. But, that's a relatively small part of the economy.

... In a speech Monday, Senior Deputy Governor Carolyn Wilkins highlighted how the nation’s recovery is broadening across regions and sectors, giving policy makers “reason to be encouraged.” She downplayed worries about Toronto’s housing market and said policy makers need to keep their eye on the future evolution of growth, not only current economic conditions.

“As growth continues and, ideally, broadens further, Governing Council will be assessing whether all of the considerable monetary policy stimulus presently in place is still required,” Wilkins said in Winnipeg, Manitoba. “At present, there is significant monetary policy stimulus in the system.”

Wilkins said policy makers will be focusing on the data and talking to “many people” ahead of the next interest-rate decision on July 12..."

... In a speech Monday, Senior Deputy Governor Carolyn Wilkins highlighted how the nation’s recovery is broadening across regions and sectors, giving policy makers “reason to be encouraged.” She downplayed worries about Toronto’s housing market and said policy makers need to keep their eye on the future evolution of growth, not only current economic conditions.

“As growth continues and, ideally, broadens further, Governing Council will be assessing whether all of the considerable monetary policy stimulus presently in place is still required,” Wilkins said in Winnipeg, Manitoba. “At present, there is significant monetary policy stimulus in the system.”

Wilkins said policy makers will be focusing on the data and talking to “many people” ahead of the next interest-rate decision on July 12..."

Don't hold your breath.Every time the BOC raises rates .5 it knocks the stuffing out of the economy.At present they're jawboning

That's a typical exaggeration from ETB. The BoC raises rates as the economy advances. Similarly, it drops rates as the economy falters. Raising rates by 0,5% in 2017 won't tank the economy.The uncertainty is what happens in 2018.

I'm kind of doubtful that the Vancouver RE market is economy driven. The average wage can't afford anything. Been to a few open houses. So many young people with parents (help?). Even non-asian.

Vancouver market is driven by wealth, not incomes. Big difference. Raising rates will put locals on the sidelines while foreigners continue to buy. The opposite of what they want (so they say).

I'm sorry my dear. The mass majority of sales are bought by locals (wage slaves). I see no evidence after the imposition of the foreigners tax of foreign buying. If the foreigners are not buying in West Vancouver and Vancouver West, then they won't be buying in the rest of metro. Yes?

I'm kind of doubtful that the Vancouver RE market is economy driven. The average wage can't afford anything. Been to a few open houses. So many young people with parents (help?). Even non-asian.

Vancouver market is driven by wealth, not incomes. Big difference. Raising rates will put locals on the sidelines while foreigners continue to buy. The opposite of what they want (so they say).

I'm sorry my dear. The mass majority of sales are bought by locals (wage slaves). I see no evidence after the imposition of the foreigners tax of foreign buying. If the foreigners are not buying in West Vancouver and Vancouver West, then they won't be buying in the rest of metro. Yes?

Take a minute to think about what you posted. The graph is of Vancouver west, the average sale price was 3 million + . Again using some common sense, 1 million down payment and 2 million mortage? So a wage slave can make $10,000 monthly mortage payments?

ETB is right, no one is buying million dollar homes on wages. Its wealth from parents or some sort of inheritance.

Foreigners have stoped buying, but Canadians of foreign birth continue to buy. Its not just foreign Chinese buying, Chinese Canadian citizens with $ are buying.